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Financial result for January - September good

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• Sales EUR 1,027.5 million (971.1 million for January - September 2006)
• Operating profit EUR 159.9 million (151.8 million)
• Profit before extraordinary items EUR 150.6 million (146.3 million)
• Investments EUR 317.1 million (412.4 million)
• Return on capital employed 12.2% (14.3%)
• Equity ratio 62.8% (68.4%)
• Net gearing 34.1% (16.1%)

The figures given in this Interim Review comply with IFRS accounting standards.
Result burdened by rise in wood raw material costs, but profitability slightly
improved on this period last year 

Sales for the first nine months of the year were EUR 1,027.5 million, six per
cent up on this period last year (EUR 971.1 million). Pulp sales totalled
1,884,400 tonnes, about the same as for January - September last year. 

Operating profit was EUR 159.9 million, up five per cent on the same period
last year (151.8 million). The improvement in both sales and financial result
is attributable to the strong upward trend in pulp prices. The main factors
adversely affecting the financial result were the weakening of the dollar
against the euro and the rise in the cost of wood raw material. 

Foreign currency prices for softwood pulp were on average 18 per cent higher
than during the same period a year ago. Average prices for hardwood pulp were
nine per cent stronger. The dollar was more than eight per cent weaker against
the euro than during this period last year. 

Steady rise in pulp prices on a stable market stable
 
The market for pulp has been stable all year and demand has been good. Pulp
stocks have varied throughout the supply chain between low and normal. Wood
shortages in Finland, Russia and Indonesia disrupted the pulp supply and
unscheduled downtime was necessary as a result. 

Pulp prices have risen steadily throughout the year. In January, softwood pulp
was selling in Europe at USD 730/tonne and hardwood pulp at USD 670. The
corresponding prices in September were USD 830 and USD 720. Prices will
continue to be raised in October. 

During the autumn pulp supplies will be affected by local strikes by forest
workers and pulp mill operatives in Canada and Korea. New hardwood pulping
capacity totalling over 3 million tonnes is due to come on stream before the
end of the year. However, the impact on the market will not be seen until 2008. 





                                            

                

            

        

    

    



    

        
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